Incyte updated investors of its performance in the second quarter on Tuesday, announcing its second-quarter results before the market opened. The company appears to be keeping its momentum going. Here's what you need to know about the biotech's Q2 results.
By the numbers
Incyte announced Q2 revenue of $529.9 million, a 1.6% increase from the $521.5 million reported in the same quarter of the previous year. The company's reported revenue was higher than the average analysts' revenue estimate of $497.8 million.
How did Incyte's bottom line look in Q2? The company reported net income of $105.3 million under generally accepted accounting principles (GAAP), compared to $52.4 million in the same period in 2018.
Incyte also announced second-quarter adjusted non-GAAP earnings of $162 million, or $0.75 per diluted share. This marked a 19% increase from adjusted earnings of $136 million, or $0.63 per diluted share, reported in the same quarter of 2018. It also trounced the consensus analysts' estimate of Q2 adjusted earnings of $0.48 per share.
Behind the numbers
Incyte's solid results stemmed primarily from continued success for its flagship drug, Jakafi. Net revenue for Jakafi jumped 18.5% year over year to $410 million. The biotech also receives product royalties from Novartis, which markets the drug under the brand name Jakavi outside the U.S. These royalties totaled $57 million in the second quarter, up from $47 million in the prior-year period.
The company's other two approved drugs also contributed to Incyte's growth in the second quarter. Net product revenue from Iclusig jumped 20% year over year to $24 million. Product royalties for Olumiant, which Incyte licensed to Eli Lilly, soared 111% to $19 million.
Operating costs and expenses were 1.6% lower in Q2 than in the same period of 2018. Operating income rose 19% in the second quarter to $99 million from the previous year's quarter of $83 million.
One key development for Incyte during the second quarter was the FDA approval in May of Jakafi in treating steriod-refractory graft-versus-host disease (GVHD). This marked the third indication for which the drug has won approval in the U.S.
Incyte now anticipates Jakafi revenue between $1.61 billion and 1.65 billion in for the full year. This reflects a narrowing from its previous guidance of $1.58 billion to $1.65 billion. The company also continues to expect that sales for Iclusig in 2019 will be between $90 million and $100 million.
Investors can also look forward to key pipeline developments for Incyte. CEO Herve Hoppenot said that the company is "on track to file a New Drug Application (NDA) seeking approval of pemigatinib in cholangiocarcinoma [also known as bile duct cancer] in the second half [of 2019], and we look forward to announcing the results of multiple pivotal trials of ruxolitinib [the active ingredient in Jakafi] and itacitinib in GVHD by year-end."